What a start to the new year. Sector investing continued its run in January, demonstrated by the significant inflows into equity ETFs. Technology and Financials both experienced large inflows, extending their popularity over the last 12 months. Whilst Technology suffered from sector rotation towards the end of last year, further earnings momentum has renewed investor confidence.

PIMCO takes a long-term view of markets and economies, one that anchors investment decisions during shorter-term periods of market volatility. Nonetheless, the dramatic return of market volatility has understandably unnerved many investors. On 9 February, Daniel J. Ivascyn, group chief investment officer, and Scott Mather, CIO U.S. core strategies, updated clients on the dynamics at play.